You probably heard of countless negative claims about network marketing. Most of it pertains to a system called “ponzi scheme” or more commonly known as a pyramiding scam. This is perhaps due to the several network marketing companies who eventually folded up after several years or those negative claims from distributors who did not recoup their investments.
Let’s talk about the issue of pyramiding. In every organization, there is always a ‘pyramid’ as evidenced in the organization chart where the people at the top make more money than those beneath them. Having said that, every conventional company is a pyramid. Why? In a conventional company, there exists a structure whereby the CEO generates income from the efforts of each person below, but those workers do not have the opportunity to earn as much as, or more than, the CEO.
Have you ever heard of a general worker who makes more than the CEO or the General Manager, given that their source of income is solely dependent on their work? Does middle management ever make more than the company’s senior management does? The old model just isn’t fair for those underneath. No matter what their effort, they can never make more than those above them can. The pyramid then is not equitable.
However, in network marketing, you are building an income from the production of everyone in your organization whether you directly sponsored them or not. Each person in your organization can do the same, so now you have created a situation where everyone has the same amount to gain. It’s the fairest structure available because everyone can create exactly the same situation. And in fact, due to the nature of network marketing, people under you can and do in some cases, earn more than you simply because they can access levels that you cannot.
Everyone can reach down into their organization the exact same number of levels. If someone has created more volume in their levels than you have in yours, and some of those levels are beyond your ability to reach them, that person can actually make more than you can, even though they are under you!
In fact, Robert Kiyosaki himself, the famous author of Rich Dad Poor Dad recommends network marketing. He says that network marketing levels the playing field. It is not about your college degree, it is not the family you came from, your race, your attractiveness, or whatever the stuff that people do to discriminate. It is really about performance. If you perform, you get paid. And if you do not perform, you do not get paid. And if you do not like that, than the business is not for you. However, once you put your efforts into it and your’re determined to succeed, then you can possibly achieve your ‘impossible dreams’.
Another thing that he pointed out is that in network marketing, they want you to get better. In the corporate world, they do not want you to get better. You get better, you threaten their job because you can replace them. So it is a completely different environment in network marketing.
So if this is the set up, why doesn’t everyone go out and start their own network marketing business? Kiyosaki tells something about fear. “I have a coward inside of me, I know that person very well. This is the battle we all face. And I think often times, cowards ask other cowards, and they get talk out of it, or they go, ‘Why would you do that’, and they get bullied into being a coward.”
Lately, I opened my mind again into the potential of network marketing. This time I will pour effort into it. I decided to join one based on the 25 questions to ask your sponsor in MLM that I made two years ago which are now the most commented article in this blog.
Network marketing, is in fact, the best training ground to become an established entrepreneur. How would you become strong if in the first place you cannot handle your fears? More so, it is the cheapest way of building a business. When you build a business from scratch, it requires huge capital plus a tremendous amount of effort because you will be solely in charge of that business from its day-to-day operations. When you build a business through franchising, it requires huge amount of capital as you’ll be buying an established business system. Whereas in network marketing, you only need a small amount to start the business.
This video explains how network marketing works – to PAY IT FORWARD